The Perth Disaster Is Heading East

This post was originally published on this siteEconomist John Adams and analyst Martin North discuss the state of WA with State MP Charles Smith MLC He was elected at the 2017 Western Australian election to represent the East Metropolitan Region in the Western Australian Legislative Council from 22 May 2017 for the Pauline Hanson’s One … Read moreThe Perth Disaster Is Heading East

90 Day+ Mortgage Delinquencies Higher

This post was originally published on this siteMoody’s released their SPIN index for May 2019. Their overall score slid just a little to 1.52%, though with significant regional variations. However, 90 days+ default rates continued higher. There were rises in 90 day issues in both the regional and major banks books. A caveat of course … Read more90 Day+ Mortgage Delinquencies Higher

More Households Are Renters Or Hold Mortgages

This post was originally published on this siteThe ABS released their latest research on households and wealth, with a focus on housing. It shows that a greater proportion of households now rent, and those owning property are more likely to use a mortgage. This is consistent with our own surveys and is the consequence of … Read moreMore Households Are Renters Or Hold Mortgages

Victorian Cladding Canary Sings To The Tune Of $600m

This post was originally published on this siteThe Victorian Government has announced $600m to help cover the costs of rectifying around 400 properties in the state, from about one third of those audited of high-risk dwellings (not so far covering any commercial buildings). Half may be recovered from higher building levies. This issue will run … Read moreVictorian Cladding Canary Sings To The Tune Of $600m

A Conversation With Steve Keen: Part 3 – Ecology and Energy; The New Horizon

This post was originally published on this siteThe third part of my conversation with economist Steve Keen. Part One : Part Two: Support Steve via his Patreon Channel Watch our previous show: Are Icebergs Fluffy? … A Conversation With Steve Keen [There will be no Property Imperative Weekly today due to my wife’s illness] Please … Read moreA Conversation With Steve Keen: Part 3 – Ecology and Energy; The New Horizon

The RBA FOI On First Home Loan Deposit Scheme

This post was originally published on this siteThe RBA just released a FOI relating to the Federal Government’s proposed First Home Loan Deposit Scheme. How many loans might be made? “the point of the estimates is that the various caps on the scheme (10,000 loan cap, income and house prices) are likely to be the … Read moreThe RBA FOI On First Home Loan Deposit Scheme

RBA flags ‘overhang effect’ of rising mortgage debt

This post was originally published on this siteWell, surprise, surprise, the RBA has realised that high mortgage debt reduces household consumption, according to new research they published. Yet they also note the positive economic impact of higher debt, and say the the overall impact is “unclear”! Well, the DFA surveys make it quite clear, many … Read moreRBA flags ‘overhang effect’ of rising mortgage debt

A Conversation With Steve Keen: Part One – The Debt Problem

This post was originally published on this siteIn part one, Steve Keen, the controversial economist, and I discuss the nature of debt and how it impacts the economy. Part two will follow later…. Support Steve via his Patreon Channel Watch our earlier show: Are Icebergs Fluffy? … A Conversation With Steve Keen Please follow and … Read moreA Conversation With Steve Keen: Part One – The Debt Problem

APRA applies additional capital requirements to ANZ, NAB and Westpac

This post was originally published on this siteThe Australian Prudential Regulation Authority (APRA) is applying additional capital requirements to three major banks to reflect higher operational risk identified in their risk governance self-assessments. APRA has written to ANZ, National Australia Bank (NAB) and Westpac advising of an increase in their minimum capital requirements of $500 … Read moreAPRA applies additional capital requirements to ANZ, NAB and Westpac

Household Finance Confidence Tanks Some More

This post was originally published on this siteAfter the slight twitch of positive sentiment following the election in May, the DFA Household Finance Confidence Index fell again, to a new low of 85.54. Whilst the RBA rate cut may offer some borrowers the prospect of improved cash flow (when the changes propagate through to the … Read moreHousehold Finance Confidence Tanks Some More

Fed Confirms Easing Bias

This post was originally published on this siteIn the latest FOMC minutes, the tone suggests a potential easing rate bias, recognising the rising economic risks. Uncertainties have increased they say. In their discussion of monetary policy for the period ahead, members noted the significant increase in risks and uncertainties attending the economic outlook. There were … Read moreFed Confirms Easing Bias

The Council Of Financial Regulators Speaks

This post was originally published on this siteThe Council just updated their charter, and published their latest minutes. At least there is some minimal disclosure now, though high-level. Note the fact that Treasury is one of the members, alongside the RBA, ASIC and APRA. The Council of Financial Regulators (the Council) is the coordinating body … Read moreThe Council Of Financial Regulators Speaks

The Economic Massacre Of Mandurah

This post was originally published on this siteEconomist John Adams, analyst Martin North and the CEC’s Robbie Barwick discuss their recent visit to Mandurah, in WA, a post code which a couple of years back registered as highly mortgage stressed. So what has happened since then? The Four Corners program from 2017, where Mandurah was … Read moreThe Economic Massacre Of Mandurah

Westpac to refund 40,000 mortgage customers

This post was originally published on this siteThe number of Westpac mortgage customers impacted by an error in 2017 has blown out to 40,000 customers despite initial estimates of less than half that number, via InvestorDaily.  In 2017, Westpac announced that an expected 13,000 owner-occupier customers had been charged excess interest due to what they … Read moreWestpac to refund 40,000 mortgage customers

Confidence Fades As APRA Caves Again… And Other Stories

This post was originally published on this siteA quick round-up of some of today’s news, including the latest falls in unit sales, APRA’s latest climb down, consumer and business confidence and ASIC move to curtail some of the excesses in the short term consumer credit market where people might pay 990%. Please follow and like … Read moreConfidence Fades As APRA Caves Again… And Other Stories

ASIC consults on proposal to intervene to stop consumer harm in short term credit

This post was originally published on this siteASIC has released a consultation paper (CP 316) on the first proposed use of its new product intervention power. On this inaugural occasion, ASIC is looking to address significant consumer detriment in the short term credit industry. Under their recommended Option 1: ASIC would use their product intervention … Read moreASIC consults on proposal to intervene to stop consumer harm in short term credit

APRA Caves Again

This post was originally published on this siteThe Australian Prudential Regulation Authority (APRA) has released its response to submissions on proposed changes to the application of the capital adequacy framework designed to support the orderly resolution of a failing authorised deposit-taking institution (ADI). APRA released a discussion paper in November last year proposing that the … Read moreAPRA Caves Again

NZ’s plan for deposit insurance falls well short of protecting people’s savings

This post was originally published on this siteFrom The Conversation. The New Zealand government’s plan to introduce deposit insurance is a welcome step. Last week, finance minister Grant Robertson announced a new deposit protection regime to make the banking system safer for customers and to strengthen accountability for banks’ actions. Worldwide, 143 countries have deposit … Read moreNZ’s plan for deposit insurance falls well short of protecting people’s savings

APRA finalises amendments to guidance on residential mortgage lending

This post was originally published on this siteThe Australian Prudential Regulation Authority (APRA) has announced that it will proceed with proposed changes to its guidance on the serviceability assessments that authorised deposit-taking institutions (ADIs) perform on residential mortgage applications. In a letter to ADIs issued today, APRA confirmed its updated guidance on residential mortgage lending … Read moreAPRA finalises amendments to guidance on residential mortgage lending

Westpac warns on rise of non-banks in NZ

This post was originally published on this siteLike Australia, New Zealand is consulting on the capital requirements for its top banks, to mitigate their risk of failure. The Reserve Bank of New Zealand (RBNZ) received 160 industry submissions in the last round of consultation, including contributions from Australia’s major banks with Westpac voicing “significant concerns” … Read moreWestpac warns on rise of non-banks in NZ

High Rise Units Worth $150k Less….

This post was originally published on this siteApartment owners in high-rise units are realising their properties are worth less than they paid for them as rampant oversupply and falling demand send real estate values plummeting. Via RealEstate.com and The Daily Telegraph. Recent sales figures indicated multiple unit owners made a loss on their investments, with … Read moreHigh Rise Units Worth $150k Less….

Survey shows property confidence increase after year of decline

This post was originally published on this siteThe Property Council of Australia believes a number of economic challenges remain for Australia’s property industry, despite new data showing increased confidence in the sector for the first time in 12 months, via The Recon Daily. The latest ANZ/Property Council Survey for the September 2019 quarter shows that … Read moreSurvey shows property confidence increase after year of decline

Household Debt Ratios And Mortgage Stress Continues To Rise

This post was originally published on this siteWe have released the June 2019 mortgage stress results, based on our running 52,000 household surveys. We found that 32% of households are now dealing with mortgage stress, a record, meaning they are having cash flow issues managing their finances and mortgage repayments. This translates into more than … Read moreHousehold Debt Ratios And Mortgage Stress Continues To Rise

Home Approvals Remain Weak In May 2019

This post was originally published on this siteThe ABS released their May 2019 Building Approvals data today. The trend estimate for total dwellings approved fell 0.5% in May, while the less reliable seasonally adjusted estimate for total dwellings approved rose 0.7% in May. As you know DFA uses the trend series in our analysis and … Read moreHome Approvals Remain Weak In May 2019

RBA Rate Decision – Cut Again

This post was originally published on this siteThe RBA has released their statement today. At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.00 per cent. This follows a similar reduction at the Board’s June meeting. This easing of monetary policy will support employment growth and provide greater confidence that … Read moreRBA Rate Decision – Cut Again

New Home Sales Rebound In May – HIA

This post was originally published on this siteNew home sales jumped in all four major states in May 2019, according to the HIA New Home Sales report – a monthly survey of the largest volume home builders in the five largest states – provides an early indication of trends in the residential building industry. They … Read moreNew Home Sales Rebound In May – HIA

Aussies’ awareness of changes impacting credit health still a work in progress

This post was originally published on this siteResearch from credit information website, CreditSmart.org.au, has revealed that one year on from the adoption of Comprehensive Credit Reporting (CCR), most Australian consumers are still unaware of the changes that are impacting their credit health, and may not know how it can impact their future credit applications. The … Read moreAussies’ awareness of changes impacting credit health still a work in progress